Why is mining not allowed in China

1. At present, bitcoin mining still exists in China, but e to the stricter regulatory policies, many miners have left. Because it may be difficult to make money in the future.

2.

Recently, the news about "China quietly ordered the closure of bitcoin mines" spread like wildfire. Some media learned through insiders that the central bank held a closed door meeting to rectify some mines with non-standard electricity consumption

in fact, the rectification and treatment of Mines started last year, especially after the closing of domestic exchanges last year, the relevant regulatory authorities also discussed the issue of mine retention, but the conclusion is that the reasons for closing mines are not sufficient, and the mines have not caused more social problems, and the risk points are not clear, so no specific arrangements have been made. However, all localities have received "window guidance", that is, local enterprises can not participate in digital currency mining

in 2016, China's power generation ranked first in the world, and the total power generation accounted for 25% of the world. In this case, according to common sense, mining power in China is indeed the most abundant, especially with the decline of China's economic growth, the wasted power resources are increasing

the electricity of power stations can not be stored, but if the electricity is converted into digital currency, it can be stored. In fact, if China's surplus power generation can be converted into bitcoin for storage, it should be the most efficient mode of proction and operation. It is equivalent to procing US dollars with electricity. It is a processing export mode with the highest added value

in addition, according to the historical development, most of the power in the future may be consumed by computers. This is a judgment I made, which can be witnessed by our generation. In our daily life, the proportion of electricity consumption will be lower and lower. In the future, mankind will solve all kinds of problems by means of digitization and blockchain, and "mines" will only increase, not decrease. Especially with the development of artificial intelligence, space exploration and other fields, the demand for computing power will increase exponentially

electricity is just a kind of energy, just like a person, the biggest energy consumption is not the limbs, but the brain. The human brain is a 24-hour machine. A thinking person's brain consumes 75% of the liver's stored blood sugar every day, and the oxygen consumption accounts for 20% of the whole body's oxygen consumption. The more the brain thinks, the more glucose the neurons need

When the electric lamp was invented 200 years ago, people thought that the best use of electricity was to light the bulb. Has the final say that what electricity market will be most effective in future? p> No one can see electricity. Up to now, it is difficult for many people to understand the mystery of its existence, but electricity has changed the world. The influence of many virtual things is often greater than that of physical things. What does "digital assets" mean to China and the world? I think it is difficult for many people, including the government, to make clear at this time. What we need to reflect on is that apart from the four great inventions, such as electricity, light, telephone, computer, digital currency and so on, how many of the things that are pushing mankind forward are invented by China

when a phenomenon appears, we must study the background and logic behind it. The future competition can be said to be military competition, economic development competition and financial competition, but it can also be said to be ideological and computational competition. It's easier to close mines than to stop trends

3.

There is no law in China to ban bitcoin, so it is not illegal to mine and earn bitcoin

it is not illegal to buy bitcoin in China. In 2013, five ministries and commissions jointly issued the bitcoin risk notice, which states that although bitcoin does not belong to legal tender and is not legally compulsory, people can freely participate in bitcoin trading activities when they voluntarily undertake risks

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"notice" clearly defines the nature of bitcoin, and holds that bitcoin is not issued by the monetary authority, has no monetary attributes such as legal compensation and mandatory, and is not a real currency. In terms of nature, bitcoin is a specific virtual commodity, which does not have the same legal status as currency and cannot and should not be used as currency in the market

however, as a kind of commodity trading on the Internet, ordinary people have the freedom to participate in bitcoin trading at their own risk

the notice requires that at this stage, financial institutions and Payment institutions shall not price procts or services with bitcoin, buy or sell bitcoin as a central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, and provide other bitcoin related services to customers directly or indirectly, Including: providing bitcoin registration, trading, clearing, settlement and other services for customers; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin and RMB and foreign currency exchange services; Carry out bitcoin storage, custody, mortgage and other services; Issuing financial procts related to bitcoin; Take bitcoin as the investment target of trust, fund, etc

in order to avoid over hype of virtual commodities such as bitcoin in the name of "virtual currency" and damage the public interest and the legal tender status of RMB, the circular requires financial institutions and Payment institutions to correctly use the concept of currency in their daily work, pay attention to strengthening the ecation of the public's knowledge of currency, and correctly understand the concept of currency The concept of correctly treating virtual commodity and virtual currency, rational investment, reasonable control of investment risk, and maintenance of their own property security should be included in the content of financial knowledge popularization activities, so as to guide the public to establish a correct concept of currency and investment

source of reference: People's website bitcoin network virtual currency